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C O N F I D E N T I A L SECTION 01 OF 03 SUVA 000409
SIPDIS
SIPDIS
E.O. 12958: DECL: 08/14/2017
TAGS: PRELPGOVMARRPHUMPINREAIDECONKCRMTV
SUBJECT: TUVALU: NEEDY AND SEEKING USG ASSISTANCE
REF: A. SUVA 398
¶B. SUVA 402
Classified By: Amb. Dinger. Sec. 1.4 (B,D).
Summary
-------
¶1. (SBU) Tuvalu's Prime Minister Ielemia remains strongly
interested in regaining the Peace Corps, accessing the
Millennium Challenge Account, and providing skilled workers
for Guam construction projects. He believes Fiji's Commodore
Bainimarama should not attend the Pacific Islands Forum in
Tonga. Parliament's passage of a bill to "de-corporatize"
Tuvalu's one radio station and bring it back fully under
government auspices accents media freedom issues. It appears
PM Ielemia is gaining control over a fiscal mess he inherited
from his predecessor. Tiny Tuvalu, with almost no resource
base, always needs donor help and is not afraid to ask. See
para 9 for opportunities. End summary.
Ielemia on PCVs, MCA, Guam, PIF/RIF, and Fiji
---------------------------------------------
¶2. (C) The Ambassador's July 16-19 visit to Tuvalu gave
opportunity to review a range of bilateral and regional
issues with Prime Minister Ielemia and his government.
Ielemia reiterated Tuvalu's strong interest in reviving a
Peace Corps program (ref A), tapping the Millennium Challenge
Account, and contributing workers for Guam construction jobs.
A number of highly skilled Tuvaluans returned last year from
Nauru where they worked in the phosphate industry. Most are
now unemployed. We described the state of play in Washington
on PCVs and the MCA, and suggested Tuvalu prepare a skills
data base for the day when Guam employment kicks in. Ielemia
expressed ambivalence about the Pacific Island Forum (PIF)
regional restructuring (RIF) proposal, and suggested Pacific
leaders need to see a variety of options. Ielemia opined
that Commodore Bainimarama should not attend the PIF meeting
in Tonga because "nobody elected him" to lead Fiji.
Tinkering with the Constitution
-------------------------------
¶3. (SBU) A session of the 15-member Tuvalu Parliament was
about to begin, with a constitutional amendment on the
agenda: to increase the number of cabinet ministers from 6 to
¶8. Tuvalu governance has been plagued by one-vote
parliamentary majorities. Just one member crossing the floor
has repeatedly caused a change of government, complicating
efficient political management. We hear that Parliament did
approve, after considerable debate, the amendment to add two
ministers, thereby sweetening the PM's ability to entice
larger coalitions.
De-corporatizing the radio station?
-----------------------------------
¶4. (SBU) Another controversial measure for Parliament was an
Ielemia proposal to "de-corporatize" the Tuvalu Media
Corporation (TMC), Tuvalu's radio station and only media
outlet. The TMC has always relied on government subsidies,
which has led some governments to expect the broadcast of
only good news. Corporatization a few years ago was intended
to encourage the TMC to find other revenue sources. It also
created an independent board of directors to insulate TMC
editors and reporters from government influence. Commercial
ad revenues remain very scant, and the corporatized TMC had
to rely on ever-shrinking government subsidies, currently
A$80,000/year.
A worry about media insulation from politics
--------------------------------------------
¶5. (C) To an extent the political-insulation aspect of
corporatization worked, though we heard reports that the PM's
office on occasion was still attempting to manage news. Last
December when TMC broadcast a church leader's opinion that
Taiwan is too influential in Tuvalu, the PM's office
reportedly complained. Then, when a TMC producer passed a
heads-up about a follow-on story, the PM's office ordered
that the story not run. We hear that the TMC board fired the
producer who had contacted the PM's office. When the PM
attempted to force the producer's reinstatement, the Board
refused. In July, the PM's office reportedly complained
about a story on the effort to de-corporatize TMC. We heard
that the PM's office considered the TMC board to be
politicized, apparently with some justification since the
chairman of the board was the former PM's wife. We are told
SUVA 00000409 002 OF 003
Parliament did pass the de-corporatization bill, after an
intense debate. That presumably means that the PM, who has
the TMC portfolio, will now directly oversee the radio
station. The Ambassador made clear the U.S. view that media
freedom is essential in every democracy.
Legal gaps
----------
¶6. (U) The general elections last August resulted in several
lawsuits challenging results. In the end, the Tuvalu courts
rejected all protests. No Tuvalu high court sittings have
been possible since last April when the one People's Lawyer
(public-defender) departed, leaving no lawyer available in
Tuvalu, aside from the Attorney General's office. That will
change shortly when a new People's Lawyer arrives, an Aussie
coming from the same role in Kiribati. A case for the Tuvalu
Court of Appeal concerning alleged discrimination against the
Brethren church remains pending. The Court of Appeal has
never convened, this is the first-ever appeal, and the Tuvalu
Government has yet to find funds to bring in three judges
from abroad. In the meantime, we were told that the Brethren
sect has stopped attempting conversions.
Responding to a fiscal mess
---------------------------
¶7. (SBU) When Ielemia's new team took office after sweeping
out nearly all members of former PM Toafa's government in
last August's elections, they found a fiscal mess. They say
government debt totaled A$18 million, including a $5 million
"suspense account" deficit at the Tuvalu bank, kind of an
overdraft facility. Ielemia reined in government expenses,
including by stopping all ministerial travel overseas unless
a foreign donor was paying. That must have been a shock,
since historically Tuvalu ministers have traveled constantly,
pulling in per diem. The Finance Minister said the debt
total is now under A$10 million. Rumor has it Taiwan
contributed several million dollars to ease the burden. (See
ref B for more on Taiwan assistance to Tuvalu). The Ielemia
Government reports Tuvalu's well-managed trust fund also had
suffered under PM Toafa, with nearly all annual proceeds
being tapped for current expenses. The Ielemia Government
claims it has built the trust's B account, its rainy-day
fund, from A$1.2 million to A$13 million.
Communications knock out
------------------------
¶8. (U) In early July, a lightning bolt made a direct hit on
Tuvalu Telecom's tower, knocking out nearly all
communications. Three weeks later, commercial overseas phone
service still was not available, and commercial internet
service was so slow as to be unavailable in practical terms.
However, a wireless network in the government building was
up, running, and available to those with the right contacts.
Late one afternoon, we observed the Taiwan Ambassador sitting
on a folding chair beside the government-building front door,
busily responding to e-mails on his laptop.
And a slew of requests
----------------------
¶9. (U) Not surprisingly, any visitor to needy Tuvalu will
receive numerous aid requests. The Ambassador fielded the
following inquiries, making no promises but agreeing to pass
requests along as appropriate:
-- As Tuvalu approaches its 30th anniversary of independence
in 2008, might the USG make a contribution to the corpus of
the Tuvalu Trust Fund? The trust was established by
Australia, New Zealand, and the UK at independence, has
benefited from professional management in Australia, and is
seen as a regional model.
-- The U.S. military left materiel, including ammunition and
44 gallon drums of liquids, on land and in lagoons of three
Tuvalu atolls used as WWII air fields. Tuvalu's Minister of
Home Affairs seeks a DOD evaluation of health hazards and
proper handling of any problems discovered.
-- The U.S. military dug extensive "borrow pits" on the
capitol atoll, Funafuti, when building the WWII air field
there. Tuvalu has long aspired to fill in the pits, remove
eye sores, and reclaim precious land. The latest proposal is
to buy aggregate at $12/ton from a site in Fiji and transport
it to Funafuti. The PM's office wondered if the USG will
assist, given the problem's WWII origin. (Note: An Army
SUVA 00000409 003 OF 003
Corps of Engineers study in 2003 estimated the total cost of
such a reclamation project using Fiji soil would be US$28.5
million.)
-- The Minister of Home Affairs expressed interest in a U.S.
ship visit, perhaps by a Coast Guard cutter or a Navy
frigate, something small enough not to overwhelm Funafuti.
(Note: The Suva DAO is currently working on a near-term visit
by a frigate.)
-- The Minister of Home Affairs asked if a ship visit could
include a surveillance exercise with Tuvalu's patrol boat in
the EEZ. (Note: Suva DAO is aware of the request.)
-- The Police Commissioner asked if the USG might provide
training for Tuvalu police heading to peacekeeping
operations. Tuvalu currently is participating in RAMSI in
the Solomon Islands. (Note: It appears Tuvalu police will
participate in an Australia-led exercise in Tonga at the end
of August. U.S. forces will be there, too, and will
presumably have an opportunity to help train the Tuvaluans.)
-- The Police Commissioner inquired about basic FBI training
courses, particularly focused on money laundering and the
possibility that some members of an expanding Chinese
business community may have criminal intentions.
-- Ministers noted frequent offers of deals by international
businessmen that sound attractive, maybe too attractive.
Tuvalu has very limited ability to screen such offers. Could
the USG assist the vetting process? We asked for details of
particular cases.
-- Tuvalu has an HIV/AIDs problem, imported by Tuvaluan
seamen who roam the world on German merchant ships. The
Minister of Health said he knows of 5 confirmed cases, which
for a population of under 10,000 is worrying. Might the USG
help with treatment?
-- The PM and Speaker both asked about educational
scholarships to the U.S. We noted that educational
institutions in the U.S. value diversity and provide
extensive scholarship opportunities. We offered the
Embassy's educational-advising services.
-- The Minister of Agriculture noted a crying need for a
person with veterinary training, particularly to treat pigs.
Comment
-------
¶10. (C) No government is perfect. The Ielemia team seems to
have done a relatively effective job of addressing the
previous government's fiscal sloppiness. On the other hand,
the reported efforts to steer radio news are worrying, and a
rumor was circulating in Funafuti that Ielemia added
undeserving relatives to a list of those eligible for a
post-cyclone assistance package. Since Tuvalu has almost no
natural resources, officials are always in "ask" mode with
donors. It is in the USG's interest to be responsive when
there are convenient ways to do so. Tiny Tuvalu has a full
vote in the UNGA and other international organizations, and
even a little bit of aid has an impact.
DINGER